WASHINGTON—After going into effect this week, the Department of Housing and Urban Development's (HUD) final rule to amend the Fair Housing Act's (FHA) disparate impact standard is already facing two legal challenges, one in California and another in Connecticut.
The complaints allege the final rule violates the Administrative Procedure Act and is contrary to the FHA and the Supreme Court's 2015 decision in a related case. One of the cases requests an injunction on implementation of the rule until the court rules on the merits of the case, NAFCU reported.
HUD issued the rule in September. The final rule aligns standards for disparate impact claims more closely with the 2015 Supreme Court decision, NAFCU said.
NAFCU said it supports strong and effective fair lending rules for credit unions that are responsive to technological change.